The No. 1 marketing mistake farmers make is not getting educated about the tools of the market, says Mike Florez with Florez Trading, one of 15 market analysts speaking this week at the Farm Journal 2010 Marketing Rally.
“If you can learn some technical analysis and understand the tools to project market momentum, you can get some idea on your own about when the markets are topping,” Florez says. How to read charts and key in on market signals will be crucial for farmers in the coming months, he says.
In his breakout session, Florez focused on teaching farmers the basics behind the technical side of the markets and how to watch for higher highs and lower lows.
“There is a lot of education lacking on technical analysis,” Florez says. “But the technical picture gives you the hints about what is going to happen in the market. Volatility is high and any hints you can get early will help you with decision making.”
Florez says he is positive that the market will continue on the uptrend: “There is nothing I see that is projecting any type of top in the market,” he adds